Well I fixed one problem, on my multisite some subsites could save packages and some not, so I deactivated the download plugin (make sure if you have any add-ons deactivate them first) then activated them on a per site basis, not network. That fixed the permission error.
So my only issue now is when adding files to the package in order to edit the title of the file I have to update the package, exit back to the dashboard then back into the package, only then can I edit the title.
Thanks.